House prices at all-time high

House prices continued to rise in August with the highest monthly rise in more than 16 years, according to the Nationwide, which said the recovery in housing market activity had been "unexpectedly rapid".

"House prices have now reversed the losses recorded in May and June and are at a new all-time high," said its chief economist, Robert Gardner.

Prices rose by 2% last month, taking the average cost of a house to £224,123.

Nationwide said the increase in August was the highest since February 2004, when house prices rose by 2.7%. As a result, annual house price growth accelerated to 3.7%, from 1.5% in July.

Rival mortgage lender, the Halifax, had already suggested a similar rise in prices over the summer.

Forecasters expect a drop in prices again, however, when the economic impact of Covid-19 is felt on jobs.

3 September 2020